MICROCAPITAL BRIEF: Advans SA Raises $27m from Existing Shareholders in Third Round of Fundraising

Advans SA, a Luxembourg-based organization that provides financial services to  micro, small, and medium-sized enterprises (MSMEs), recently raised EUR 20 million (USD 26.8 million) in its third round of fundraising. This capital was provided by existing shareholders and will be used to fund microfinance institutions in developing countries, with a focus on Africa and Asia. The additional funds bring Advans SA’s total committed capital to EUR 63.6 million (USD 85 million). The shareholders are: Agence Francaise de Developpement (AFD); European Investment Bank (EIB); International Finance Corporation (IFC); CDC Group, the UK Government’s development finance institution (CDC); Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW)  a state-owned development bank based in Germany; and Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO), a Dutch development bank.

EIB committed the greatest amount of capital at EUR 14 million (USD 18.7 million) or 22 percent of the total stake. FMO and CDC both committed EUR 11 million (USD 14.7 million) putting them each at 17.3 percent of the total stake. IFC committed EUR 9.7 million (USD 13 million) putting it at 15.3 percent of the total stake. KfW committed EUR 9.5 million (USD 12.7 million) putting it at 14.9 percent of the total stake. AFD committed EUR 7.4 million (USD 9.9 million) putting it at 11.6 percent of the total stake. Horus & affiliates committed EUR 1 million (USD 1.3 million) putting it at 1.6 percent of the total stake.

Claude Falgon, the Executive Director of Advans SA, stated, “This renewed support from our shareholders shows their continued belief in the expansion and progress of the Advans group. These funds will help to reinforce the group’s infrastructure and accompany the growth of our affiliates over the next few years, enabling Advans to reach out to a wider range of clients.”

As of 2013, the Advans network serves approximately 322,000 loan clients via 140 branches in eight countries: Cambodia, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Pakistan, Tanzania, and Nigeria. As of March 2013, Advans SA held total assets of EUR 45.0 million (USD 61.7 million) and committed capital of EUR 43.6 million (USD 58 million

By Ananya Tiwari, Research Associate

About Advans SA:
Launched in 2005, Advans SA SICAR is a venture capital company that is registered in Luxembourg and managed by Horus Development Finance of France. The mission of Advans is to increase access to financial services for micro-, small and medium-sized enterprises (MSMEs) in emerging economies. In addition to equity and debt funding for microfinance institutions (MFIs), Advans provides technical assistance to MSMEs in an effort to assist them in achieving sustainable and profitable operations. As of 2013, the Advans network serves approximately 322,000 loan clients via 140 branches in eight countries: Cambodia, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Pakistan, Tanzania, and Nigeria. As of March 2013, Advans SA held total assets of EUR 45.0 million (USD 61.7 million) and committed capital of EUR 43.6 million (USD 58 million).

About European Investment Bank (EIB):
Established in 1958 under the Treaty of Rome, EIB is the European Union’s long-term lending institution. Its owners are the member states of the European Union, who subscribe to the Bank’s capital – approximately EUR 164 billion (USD 236 billion). The Board of Governors and the Board of Directors are the Bank’s independent decision-making bodies.

About Agence Francaise de Developpement (AFD):
Established in 1941, AFD is a bi-lateral development finance institution working on behalf of the French Government. Its public mandate is to finance development according to France’s Overseas Development Assistance policies. In 2007, AFD committed over €3.5 billion to more than 60 developing countries.

About International Finance Corporation (IFC):
IFC is a member of the World Bank Group, created to support financial private sector development, mobilize private capital, and provide advisory and risk mitigation services to businesses and services. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In 2009, IFC made new investments in developing countries that reached a total of USD 14.5 billion

About KfW Entwicklungsbank (KfW):
KfW is a German, state-owned development bank. In 2008, KfW committed EUR 3.7 billion (USD 5.3 billion) to development projects and programmes in Asia, Europe and the Caucasus, Sub-Saharan Africa, Latin America, North Africa and the Middle East

About Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO)
FMO is a Dutch development bank. It is a public-private bank. Both the Dutch State and large Dutch banks are major shareholders. Other smaller shareholders include employers’ associations, trade unions and individual investors. Its investment portfolio is worth EUR 4.2 billion (USD 6 billion).

About CDC Group: The CDC Group is a development finance institution owned by the UK government’s Department for International Development. Established in 1948 as the Colonial Development Corporation, it later was renamed the Commonwealth Development Corporation and eventually CDC Group. The organization’s public mission is to foster growth in sustainable businesses and to help raise living standards in developing countries. In 2012, CDC announced its new strategy to provide debt and direct investment to businesses, and to act as “fund-of-funds” investor with new investments being made only in Africa and South Asia. At the end of 2012, CDC’s investment portfolio was worth GBP 2.25 billion (USD 3.68 billion).

Additional Resources

[1] Advans SA Press Release, http://www.advansgroup.com/fileadmin/Advans/Press%20releases/1410_EN_CP_Fundraising_1.pdf

MicroCapital, October 6, 2014: https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-4m-to-advans-cote-divoire-for-on-lending-to-micro-small-medium-sized-enterprises-msmes/

MicroCapital, May 14, 2014: https://www.microcapital.org/microcapital-brief-advans-pakistan-microfinance-bank-microensure-efu-life-to-cover-loan-payments-in-case-of-sickness-disability-death-death-of-spouse/

MicroCapital, February 3, 2014: https://www.microcapital.org/microcapital-brief-advans-pakistan-microfinance-bank-microensure-efu-life-to-cover-loan-payments-in-case-of-sickness-disability-death-death-of-spouse/

MicroCapital, June 26, 2013: https://www.microcapital.org/microcapital-brief-advans-sa-to-create-tunisian-microfinance-institution-advans-tunisie/

MicroCapital, April 8, 2012: https://www.microcapital.org/microcapital-brief-advans-sa-opens-microfinance-institution-advans-cote-divoire-international-finance-corporation-ifc-invests-1m-in-equity/

MicroCapital, August 8, 2011: https://www.microcapital.org/microcapital-brief-microfinance-venture-capital-company-advans-sa-wins-4m-in-grants-from-agence-francaise-de-developpement-afd-oesterreichische-entwicklungsbank-ag-oeeb-part-for-democratic-rep/

MicroCapital, January 19, 2010: https://www.microcapital.org/microcapital-brief-advans-sa-raises-33m-in-second-round-of-fundraising-from-existing-shareholders/

CDC MicroCapital Univere: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CDC+Group

FMO MicroCapital Universe: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+(FMO)

KfW MicroCapital Universe: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+(KfW)

IFC MicroCapital Universe: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)

AFD MicroCapital Universe: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agence+Francaise+de+Developpement+(AFD)

EIB MicroCapital Universe: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank+(EIB)

 

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